BRITANNIA

By Ankita Sinha (355) Aslesha Gupta(360) Hurratul Malleka Taj(361) Somya Matta(364)

Biscuit Industry in India An Overview

Biscuit industry in India in the organized sector produces around 60% of the total production, the balance 40% being contributed by the unorganized bakeries. The major Brands of biscuits are- Britannia, Parle Bakeman, Priya Gold, Sunfeast.

Britannia

One of the premier food product company

in India. Britannia started as a small biscuit company in 1892 and has grown to a household name. Britannia started its business in Calcutta (now Kolkata) with an initial investment of Rs. 295. Britannia's business flourished acquiring a reputation for quality and value. Britannia Industries Ltd. has a number of awards and accolades in its name like:Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World'. The Economic Times pegged Britannia India's 2nd Most Trusted Brand.

SWOT
Strength

2nd most trusted brand Provides good quality of biscuit cakes Product range- Rs 1 to Rs 500 Availability and variety Excellent supply chain management All age group acceptability Very own bakery products Strong distribution network Marketing and advertising efficiency Innovative products for health conscious people Leadership in 6 products out of 7 Zero trans fat company

 Weakness

Less quantity of biscuits compared to competitors Similar kind of britania products available by competitors in market Heavy expenditure on advertisements and marketing Unable to improve its margin since last few quarters due to increase in input cost

 Opportunity

New branches opening up in different area. Scope will increase the sale of product Generate employment Per captia consumption increases to 2.1kg in India Increase in purchasing power Product line extension Expansion in other countries Tie up with hostel chain, corporates Launch of various flavors in cream Increase in export turnover

 Threat

Competition (neck to neck) Discounts in bulk(decease in profits) Price wars amongst competitors Local bakery products Increase in raw material price Substitutes Inflation in prices of agriculture based commodities

Strength And Opportunities

Excellent

Supply chain management-> Increase In Per Capita Income Well established brand-> Expansion in other countries Widely accepted in all age groups-> Tie ups with hotels, corporate

Strength And Threats

Strong

distribution network in remote areas-> Local bakery in local areas Product range from Rs 1 to Rs 500-> Low price offering competitors Marketing and advertising efficiency-> Low price offering competitors Widely accepted in all age groups-> Threats from substitute

Weakness And Opportunities

Similar

Kind of Britannia products available in market-> Product line extension (variety) Heavy expenditure on advertisement and marketing-> Increase in purchasing power Quantity of biscuits less as compared to its competitors-> Per capita consumption increases to 2.1 kg in India

Weakness And Threats

Heavy

expenditure on advertisement and marketing-> Neck to neck competition in market Heavy expenditure on advertisement and marketing-> Threats from substitutes

BCG Matrix

STARS
High

market growth rate Huge market share Huge cash generation Huge cash consumption Huge investment in growing market Becomes cash cows when market growth rates decline

Products included in STAR

Milk

Treat 50-50 Tiger Little hearts

CASH COWS
Low

market growth High market share Leader in mature market Huge cash generation than consumption Low prospect for future growth so no new investment in this category Investment into STAR and QUESTION MARKS

Products included
Mary

gold Good- day Treat

Question Marks
High

Market Growth Rate Low Market Share Low cash generation than cash consumption Analyze carefully the market situation Investment into high growth potential market Critical decision making for managers

Products included
Time

pass Pure magic

Dogs
Low

market growth rate Low Market Share Neither large cash generation nor cash consumption Also known as cash traps Dogs should be sold off or liquidated.

Products included
Nutri

choice

Excellent suppl chain management

Basis Of Segmentation
Broadly there are three ways to segment the market followed by the biscuit industry:
Based
Based

on age group.

on purchasing power of the consumers. lifestyle approach.

The

Marketing Strategy
Brand

Recognition Brand Knowledge Packaging and advertising PR Communication Tie up with foreign brands Develop economic range biscuits

Action Plan